[Federal Register: April 16, 1998 (Volume 63, Number 73)] [Notices] [Page 18932-18933] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr16ap98-72] ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR Bureau of Land Management [MT-921-08-1320-01; MTM 80697] Coal Lease Offering AGENCY: Bureau of Land Management, Interior. ACTION: Notice of Coal Lease Offering By Sealed Bid MTM 80697--Western Energy Company. ----------------------------------------------------------------------- SUMMARY: Notice is hereby given that the coal resources in the lands described below in Rosebud County, Montana, will be offered for competitive lease by sealed bid. This offering is being made as a result of an application filed by Western Energy Company, in accordance with the provisions of the Mineral Leasing Act of 1920 (41 Stat. 437; 30 U.S.C. 181-287), as amended. An Environmental Assessment of the proposed coal development and related requirements for consultation, public involvement, and hearing have been completed in accordance with 43 CFR 3425. Concerns and issues expressed by the public during the public scoping process centered on social, economic, and cultural impacts to the Northern Cheyenne and Crow Tribes, hydrologic impacts to the area, and the need to do an Environmental Impact Statement as the appropriate level of environmental documentation for the development of the coal resources. Three alternatives (Preferred, No Action, and Cultural Resource Avoidance) were developed to analyze impacts and to address issues relating to the proposed action. The Preferred Alternative, including special stipulations and mitigation measures, was chosen because it will maximize the beneficial use of the subject coal resource and will mitigate impacts to one historic site and two sites which have high values as traditional cultural properties. The tract will be leased to the qualified bidder of the highest cash amount provided that the high bid meets the fair market value of the coal resource. The minimum bid for the tract is $100 per acre, or fraction thereof. No bid that is less than $100 per acre, or fraction thereof, will be considered. The minimum bid is not intended to represent fair market value. The fair market value will be determined by the authorized officer after the sale. Coal Offered The coal resource to be offered consists of all recoverable reserves in the following-described lands located approximately 10 miles west of the town of Colstrip, Montana: T. 1 N., R. 39 E., P.M.M. Sec. 2: S\1/2\NW\1/4\, N\1/2\NE\1/4\SE\1/4\ T. 1 N., R. 40 E., P.M.M. Sec. 6: Lots 1, 2, 3, 4, S\1/2\N\1/2\, S\1/2\ Sec. 8: E\1/2\, N\1/2\NW\1/4\ [[Page 18933]] Sec. 14: S\1/2\SW\1/4\, SE\1/4\ T. 2 N., R. 40 E., P.M.M. Sec. 32: All. Containing 2,061 acres, Rosebud County, Montana. The Rosebud seam, averaging 22.3 feet in thickness, is the only economically minable coal seam within the tract. The tract contains an estimated 35.6 million tons of recoverable reserves. Coal quality, as received, averages 8,360 BTU/lb., 25.52 percent moisture, 10.03 percent ash, and 0.97 percent sulfur. This coal bed is being mined in adjoining tracts by Western Energy Company. Rental and Royalty A lease issued as a result of this offering will provide for payment of an annual rental of $3 per acre, or fraction thereof, and a royalty payable to the United States of 12.5 percent of the value of coal mined by surface methods and 8.0 percent of the value of the coal mined by underground methods. The value of the coal shall be determined in accordance with 43 CFR 3485.2. DATES: Lease Sale--The lease sale will be held at 10 a.m., Thursday, May 7, 1998, in the Conference Room on the Sixth Floor of the Granite Tower Building, Bureau of Land Management, 222 North 32nd Street, Billings, Montana 59107. Bids--Sealed bids must be submitted on or before 9 a.m., Thursday, May 7, 1998, to the cashier, Bureau of Land Management, Montana State Office, Second Floor, Granite Tower Building, 222 North 32nd Street, P.O. Box 36800, Billings, Montana 59107-6800. The bids should be sent by certified mail, return receipt requested, or be hand-delivered. The cashier will issue a receipt for each hand-delivered bid. Bids received after that time will not be considered. SUPPLEMENTARY INFORMATION: Bidding instructions for the offered tract are included in the Detailed Statement of Lease Sale. Copies of the statement and the proposed coal lease are available at the Montana State Office. Casefile documents are also available for public inspection at the Montana State Office. Dated: April 3, 1998. Larry E. Hamilton, State Director. [FR Doc. 98-10127 Filed 4-15-98; 8:45 am] BILLING CODE 4310-DN-P